Unleashing the Power of Product Marketing: Metrics That Truly Matter

There are many ways to measure the contribution of Product Marketing (PMM). My earlier article discussed the PMM role and common myths and misconceptions. This article explores the invaluable significance of this function and demands that we take a closer look at the metrics that shed light on its impact.?

But first, let’s define Product Marketing: It involves the skillful creation and communication of a product or service's value to precisely targeted audiences at the optimal moment. The core focus lies in comprehending the needs of the intended customers, their pain points, and how the product/service can uniquely resolve these challenges.

The inherent complexity of the PMM role makes gauging its impact on an organization quite challenging. Nonetheless, I’ve applied many metrics in the past that can be a starting point for evaluation. Your company's objectives and goals should drive your choice of metrics:

1. Marketing-focused metrics - The metrics chiefly revolve around expanding the quantity of high-quality leads and improving the lead conversion rates. Other metrics measure the increase in traffic due to the content that the PMM has written.? Particularly significant are the Customer Acquisition Cost (CAC), Customer Lifetime Value (LTV), and the Return on Marketing Investment (ROMI).
2. Product-focused metrics - These indices assess the PMM role’s commitment to fostering the adoption and utilization of product features and functions. PMMs have a pivotal role in unveiling new products and fostering their reception. Ultimately, if PMMs have adequately addressed customer issues, desires, and necessities, this will be reflected in the product roadmap, making the assessment of user churn rate and product feedback essential.
3. Sales-focused metrics -? Product marketers create content to help reduce the deal cycle time and their effectiveness.? To validate that the PMM is creating content beneficial for the sales team, it's crucial to track asset utilization and the sales team’s confidence in the developed assets. Lastly, an evaluation of the PMM’s impacts should include the Win ratio, resulting revenue, and a decrease in the prospective discount rate.
4. Custom Success-focused metrics - The PMM role also bolsters the success function by enhancing product uptake and decreasing the count of detractors, hence mitigating the risk of churn. Similar to sales-enablement content, PMM-generated content can be utilized to help the Customer Success team boost the revenue from upsell and cross-sell opportunities.

Conclusion

Product marketing isn't merely a function; it's the bridge between your offerings and the realm of customers. It's the art of alignment, knitting product attributes with customer yearnings, thus kindling resonance and soaring sales. Through well-crafted product marketing strategies, businesses can seamlessly introduce, position, and expand their offerings in today's cutthroat business landscape. What metrics are you using to measure the value of product marketing??